GAW Miners, the Connecticut, USA based bitcoin hardware manufacturing company has a lot of legal issues piling up since it shut down its operations early this year. The company pulled down the shutters to its operations in April after it vacated GAW Miners’ Bloomfield headquarters and shut down its main website and associated Paybase platform.
GAW Miners has been facing accusations from angry customers who had invested in it. The company has been defunct since April 2015 for all practical purposes However, it has not filed for bankruptcy in any relevant jurisdiction yet. The lack of proper regulations and oversight has currently left its former disgruntled customers powerless. Meanwhile, the company is attracting a lot of legal notices from customers on a regular basis.
Burnt by the GAW Miners incident, lawmakers in Connecticut are mulling to introduce new cryptocurrency regulations in its jurisdiction. A new law has already been passed in the region which paves way for licensing and regulation of bitcoin and other digital currency companies. The lack of clarity in legal status and application of certain legislations on these defaulting startups has even got SEC looking into the possibility of GAW Miners violating any established federal securities laws during its course of operation.
GAW Miners were selling bitcoin mining equipment for a while, only to later switch its business model to something different. The company got its customers to gradually invest into Paycoin and its latest virtual cloud mining service called Hashlets. There are so many pending cases against GAW Miners and the company CEO, Josh Garza, hasn’t been forthcoming about any information regarding the lawsuits or SEC investigation.
While people are still wondering about whether GAW Miners was always a big elaborate scam or it was just a casualty of circumstance, the governments and lawmakers across United States and the world are exploring ways to prevent such things from happening again, even if it includes passing tougher laws.
Gautham has an eye for anything new. He has been part of multiple startups and his current project focuses towards the social good sector. An entrepreneur, engineer and enthusiast (bitcoin, of course), he has been moonlighting as a writer for multiple publications and currently writes at NewsBTC. Find him on twitter as @gautham_n and on facebook at /gautham.nm View all posts by Gautham
GAW Miners has been facing accusations from angry customers who had invested in it. […]